H.R. 7120: The Purple Heart Freedom to Work Act

Summary

The Purple Heart Freedom to Work Act is a bill introduced in the 119th Congress that aims to amend Title II of the Social Security Act to establish a disability benefit offset for recipients of the Purple Heart. The key provisions and impacts of this bill are:

Main Purpose and Intent

• To enable Purple Heart recipients who are entitled to Social Security disability benefits to continue receiving those benefits even after their disability termination month, subject to an earnings offset.
• To apply a higher substantial gainful activity (SGA) earnings threshold for Purple Heart recipients to demonstrate their ability to engage in work.

Key Provisions

1. Allows Purple Heart recipients to continue receiving their Social Security disability benefits beyond their disability termination month, with a $1 reduction in benefits for every $4 earned above a certain earnings threshold.
2. Establishes a higher SGA earnings threshold for Purple Heart recipients compared to other disability recipients, enabling them to earn more without losing benefits.
3. Requires the disability benefit reduction for Purple Heart recipients to also be applied proportionally to any other Social Security benefits they may receive based on the same wages and self-employment income.

Affected Parties

• Purple Heart recipients who are entitled to Social Security disability benefits
• The Social Security Administration, which would need to implement the new rules for Purple Heart recipients

Procedural and Timeline Aspects

• The bill was introduced in the House on January 15, 2026 and referred to the Committee on Ways and Means.
• The amendments made by the bill would apply to benefits payable for months beginning 6 months after the date of enactment.

Overall, the Purple Heart Freedom to Work Act aims to provide more flexibility and support for Purple Heart recipients to engage in work and earn income without fully losing their hard-earned disability benefits.